Pistons owner Tom Gores said Billups "embodies what it means to be a member of the Detroit Pistons."

"His leadership, dedication and excellence both on and off the court provide a great example for aspiring young athletes," Gores said in a statement.

"He will forever be a welcome member of the Pistons family, and I am confident that after his playing days are over he will have a long and bright future in this league."

Billups, 37, won an NBA title with the Pistons in 2004 during his first stint with the team and was an All-Star in five straight seasons from 2006-10.

He has also played for Boston, Toronto, Denver, Minnesota, New York and the Los Angeles Clippers in his 17-year NBA career, averaging 15.2 points and 5.4 assists.

"Chauncey Billups will always be a valued member of the Detroit Pistons' family," said new Pistons coach Stan Van Gundy. "Decisions like these are always difficult to make and we certainly wish Chauncey and his family the best in the future."

Billups averaged 3.8 points and 2.2 assists in 19 games for the Pistons this past season. He underwent arthroscopic surgery on his left knee in February to smooth irregularities in the meniscus and alleviate pain and inflammation.